Termination Of COBRA Coverage

1/15/2026

COBRA termination must be handled carefully, since improper termination can expose an employer to penalties or lawsuits. That said, COBRA coverage can end early if:

• Premiums are not paid on time
• Employer stops offering group health coverage
• Beneficiary becomes covered under another group plan
• Beneficiary becomes entitled to Medicare
• For cause e.g., fraud or misrepresentation)

To terminate COBRA coverage, the plan administrator must notify the qualified beneficiary when COBRA coverage is terminated. The Termination Notice must be sent “as soon as practicable” after the decision to terminate coverage. Note that this notice must Include the date coverage will end, the reason for termination, any alternative rights or conversion options, as well as contact info for questions.